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Indonesia Chooses Growth, Not Tax Increases

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The Indonesian government emphasized that there are no plans to increase tax rates in the medium term. In return, the government will expand the tax base by increasing taxpayer compliance, strengthening the tax administration system, and encouraging more business actors to enter the formal sector. This step aims to increase state revenues without increasing the tax burden on society and the business world.
On the other hand, Indonesia and Vietnam agreed to strengthen economic relations by targeting Bilateral trade value will reach US$18 billion in 2028. The two countries will increase cooperation in the fields of trade, investment, manufacturing, agriculture, digital economy and supply chains. The government hopes that this collaboration can open up more business opportunities, create new jobs, increase export competitiveness, and strengthen Indonesia’s position as one of the main economies in the ASEAN region.
Through these two policies, the government seeks to maintain fiscal stability while accelerating economic growth through tax reform and expanding international cooperation.
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